Hi I remember I read about one advantage of currency trading is that you cannot loose more money than you transfered to your account.
FXCM's general terms now state (German) "Mir ist bewusst, dass automatisches und halbautomatisches Trading hoch spekulativ ist und in diesem Zusammenhang die Möglichkeit besteht, dass die Verluste meine Einzahlungen überschreiten."
You can indeed lose more than your deposit when the broker can not immediately close your trades in case of a market crash. This happens rarely, but it happens.
Re: FXCM - Loose more than my deposit capital
[Re: jcl]
#461936 08/30/1614:1808/30/1614:18
Hi PadMalcom. No sure where you read this, but it is not true. You can lose more than you invest.
And a further add-on warning to jcl's comment: Please be aware that when this rare situation happens your losses can be huge - not just a little more than you invested - it can be many times your invested capital! Beware!
Re: FXCM - Loose more than my deposit capital
[Re: DdlV]
#461947 08/30/1616:3608/30/1616:36
FXCM changed its conditions crucialy in 2015 after the SNB incident 01/15. Before they had a "negative balance protection" (that means you cannot lose more than you have invested) that saved me and many other customers a lot of money that FXCM had to balance and I think they don't want to do it again.
Re: FXCM - Loose more than my deposit capital
[Re: Sphin]
#461952 08/30/1618:0408/30/1618:04
What kind of mechanisms can I use except leverage and stop loss to avoid that?
If you find some pls let me know, I also search for one! The only mechanism I know is to deposit enough money and not to trade with more (concerned to the amount you move, not to the margin) that you are willing to loose.
Re: FXCM - Loose more than my deposit capital
[Re: Sphin]
#461969 08/31/1615:3308/31/1615:33